Based on an initial investment of £7,200 in a stocks and shares ISA, Citi’s findings show that investors could be losing out on improved investment returns as a direct result of upfront charges being deducted from their capital.

Fund houses typically levy upfront charges of between three and 5.25 per cent on new ISA investments, and Citi’s calculations show that over a period of ten years the returns on a £7,000 investment would be diminished by as much as £743 if an initial charge of 5.25 per cent is levied.

Jonathan Gains, head of investments at Citi, says, ‘Consumers who do not need personalised investment advice should shop around for the best deal on initial charges to help boost their investment ISA performance.’

The new Citi Investment ISA has eliminated upfront fees for new and existing customers until 30 April 2008, saving investors £378 in initial charges.

Gains adds, ‘The Citi Investment ISA complements our existing range of savings and wealth management services, and offers investors the opportunity to benefit from the advantages of a multi-manager structure, which actively manages funds as markets evolve to achieve the overall investment objective.’